N.C.'s new, reduced unemployment benefits in effect

Published: Sunday, July 20, 2014 at 02:55 PM.

As unemployment statewide decreases, so does help for those who get laid off, even if they live in areas where unemployment is much higher than the statewide rate.

Since July 1, benefits for unemployed North Carolinians eligible for them will receive assistance for a maximum of 14 weeks, down from 19 at the beginning of the year, because of statewide unemployment rates dropping 1.5 percent in three-month increments.

The changes are due to House Bill 4, which the N.C. General Assembly passed and put into action July 1, 2013. The bill established the maximum amount of benefits: $350 to $535 a week, and a maximum earnings allowance of $70 each week.

Larry Parker, public information manager for the Division of Employment Security, said the number of weeks for unemployment is set on a biannual basis.

“The state put in place a sliding scale, based on a three-month average,” Parker said. “It’s looked at twice a year and based off the first three months. For example, on July 1, the focus will be on the unemployment rates of July, August and September, and the number of weeks may change again. It went down to 14 weeks because our current rate for unemployment in the state is 6.4 percent.”

From July to September last year, the state unemployment rate was at 7.9 percent.

In Alamance County, the unemployment rate is currently 6.4 percent, according to the N.C. Department of Commerce. The maximum of 14 weeks of unemployment benefits is available to Alamance County residents based on the new sliding scale.

The current unemployment rate in Caswell County is 7.2 percent and 7.1 percent in Guilford County. Based on the new law, the unemployed in these counties are eligible to receive up to 14 weeks of unemployment benefits based on the new sliding scale, which uses the state’s unemployment rate to determine length of benefits. Before the new law was passed, unemployed residents in Caswell and Guilford counties would have been eligible to receive up to 16 weeks of benefits based on the counties’ unemployment rates.

In Lenoir County, the unemployment rate is currently at 7.4 percent. According to N.C. Budget and Tax Center Director Alexandra Sirota, a maximum of 16 weeks would have been awarded if the state’s rate was the same as the county’s.

“Policymakers tied the number of weeks to the state unemployment rate because they believed that the unemployment rate demonstrated how long it should take find a job,” Sirota said. “Many areas … have higher unemployment rates because there is a struggle with jobs being laid off, and there are too few jobs being created. Before the bill came into play, you had a maximum of 26 weeks, and now those who have lost their jobs through no fault of their own have their unemployment benefits nearly halved.

“You have metropolitan areas doing a lot better and have been able to supply jobs, which also lower the statewide unemployment numbers. Still, there are 11 counties with unemployment rates above 9 percent, which if that was the state rate, would mean that jobless workers would be able to receive 20 weeks maximum.”

Jeff Shaw, director of communications at the N.C. Justice Center, said while bigger cities may flourish, smaller areas could suffer in more than wages and time.

“It’s a double whammy because not only are the unemployment benefits lowered, but there’s less money in the pockets for a healthy local economy, such as Kinston,” Shaw said. “The intent of the system is to provide workers security and dollars with funding, and they can still go to places like the local grocery store or coffee shop, putting money in the community.

“Limiting this money undermines those goals.”

Times-News reporter Chris Lavender contributed to this story.

BY THE NUMBERS

Here are the minimum and maximum number of weeks a North Carolinian is eligible to receive unemployment under House Bill 4, which became law July 1, 2013.

If statewide unemployment is:

■ 5.5 percent or lower: five to 12 weeks

■ 5.6 to 6 percent: six to 13 weeks

■ 6.1 to 6.5 percent: seven to 14 weeks

■ 6.6 to 7 percent: eight to 15 weeks

■ 7.1 to 7.5 percent: nine to 16 weeks

■ 7.6 to 8 percent: 10 to 17 weeks

■ 8.1 to 8.5 percent: 11 to 18 weeks

■ 8.6 to 9 percent: 12 to 19 weeks

■ 9.1 percent or higher: 13 to 20 weeks

Source: N.C. General Assembly

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As unemployment statewide decreases, so does help for those who get laid off, even if they live in areas where unemployment is much higher than the statewide rate.

Since July 1, benefits for unemployed North Carolinians eligible for them will receive assistance for a maximum of 14 weeks, down from 19 at the beginning of the year, because of statewide unemployment rates dropping 1.5 percent in three-month increments.

The changes are due to House Bill 4, which the N.C. General Assembly passed and put into action July 1, 2013. The bill established the maximum amount of benefits: $350 to $535 a week, and a maximum earnings allowance of $70 each week.

Larry Parker, public information manager for the Division of Employment Security, said the number of weeks for unemployment is set on a biannual basis.

“The state put in place a sliding scale, based on a three-month average,” Parker said. “It’s looked at twice a year and based off the first three months. For example, on July 1, the focus will be on the unemployment rates of July, August and September, and the number of weeks may change again. It went down to 14 weeks because our current rate for unemployment in the state is 6.4 percent.”

From July to September last year, the state unemployment rate was at 7.9 percent.

In Alamance County, the unemployment rate is currently 6.4 percent, according to the N.C. Department of Commerce. The maximum of 14 weeks of unemployment benefits is available to Alamance County residents based on the new sliding scale.

The current unemployment rate in Caswell County is 7.2 percent and 7.1 percent in Guilford County. Based on the new law, the unemployed in these counties are eligible to receive up to 14 weeks of unemployment benefits based on the new sliding scale, which uses the state’s unemployment rate to determine length of benefits. Before the new law was passed, unemployed residents in Caswell and Guilford counties would have been eligible to receive up to 16 weeks of benefits based on the counties’ unemployment rates.

In Lenoir County, the unemployment rate is currently at 7.4 percent. According to N.C. Budget and Tax Center Director Alexandra Sirota, a maximum of 16 weeks would have been awarded if the state’s rate was the same as the county’s.

“Policymakers tied the number of weeks to the state unemployment rate because they believed that the unemployment rate demonstrated how long it should take find a job,” Sirota said. “Many areas … have higher unemployment rates because there is a struggle with jobs being laid off, and there are too few jobs being created. Before the bill came into play, you had a maximum of 26 weeks, and now those who have lost their jobs through no fault of their own have their unemployment benefits nearly halved.

“You have metropolitan areas doing a lot better and have been able to supply jobs, which also lower the statewide unemployment numbers. Still, there are 11 counties with unemployment rates above 9 percent, which if that was the state rate, would mean that jobless workers would be able to receive 20 weeks maximum.”

Jeff Shaw, director of communications at the N.C. Justice Center, said while bigger cities may flourish, smaller areas could suffer in more than wages and time.

“It’s a double whammy because not only are the unemployment benefits lowered, but there’s less money in the pockets for a healthy local economy, such as Kinston,” Shaw said. “The intent of the system is to provide workers security and dollars with funding, and they can still go to places like the local grocery store or coffee shop, putting money in the community.

“Limiting this money undermines those goals.”

Times-News reporter Chris Lavender contributed to this story.

BY THE NUMBERS

Here are the minimum and maximum number of weeks a North Carolinian is eligible to receive unemployment under House Bill 4, which became law July 1, 2013.